Poorly prepared inventories are costing private landlords millions of pounds every year in lost claims, according to shock new figures.
Since the introduction of the Tenancy Deposit Protection Scheme (TDPS) in 2007, the onus has been firmly with the landlord to prove their case. However as a result of improperly prepared inventories and lack of proper evidence, landlords now have less than a one in 10 chance of winning in the event of a deposit dispute.
Statistics from The Video Inventory Agency (TVIA) show that in 2009 there were 23,500 deposit disputes – a figure which is growing exponentially each year.
Within the same period, 92 percent of these cases found in favour of the tenant, costing landlords an estimated £12 million in lost claims.
TVIA conducted research to highlight how the residential property market has been “consistently undermined” by incomplete, or sub-standard inventories.
Launched in 2009 by property investor Frazer Fearnhead, TVIA offers video inventories designed to protect landlords’ assets.
Using similar practices to police filming crime scenes, each written inventory produced is supported by video evidence designed to stand up in court.
Speaking of TVIA’s findings, Fearnhead said: “When it comes to inventories, landlords have traditionally got away with the bare minimum.
“In my time I have seen inventories that have been scribbled on the back of an envelope.
“However, since 2007, the balance of power has swung in favour of the tenant. This is positive since many would-be cowboys have been pushed out of the market; however it also means that law-abiding landlords are losing money unnecessarily.”
Frazer launched TVIA after an incomplete photographic inventory on one of his own properties meant there was no evidence to corroborate a deposit dispute.
As official partner to the Residential Landlords Association, TVIA is now urging landlords to pay more attention to inventories in a bid to protect their assets by recording the condition of their rental property and its contents.
“Video inventories are watertight and cost-effective,” adds Fearnhead. “A visual record speaks volumes and it is clear from our work that video inventories are the future for the industry.
To minimise disputes, adjudicators need to have as much information as possible to help prove a case.
“With video content, there is no room for debate.”
